Clark says budget reflects priorities he heard during election

The 2016-17 Saskatoon city budget was tabled on Monday with Mayor Charlie Clark and council members present in council chambers. (GORD WALDNER/Saskatoon StarPhoenix)Gord Waldner / Saskatoon StarPhoenix

Charlie Clark gave general support Monday to the budget, which proposes a property tax increase of 3.97 per cent.

The hike would add $67.55 to the 2017 tax bill for the average Saskatoon home with an assessed value of $325,000. The final increase approved by city council for 2016 was 3.96 per cent.

“I’m comfortable … that it reflects a lot of what I heard from citizens during the election campaign that they’re looking for,” Clark told reporters Monday at city hall. He noted the budget lacks any new mega-projects.

Like last year’s budget, a special levy for road repair accounts for about half of the 2017 increase. There is also a smaller levy dedicated to snow and ice management. In total, the budget includes $61.8 million to improve road conditions.

During the four-year city council term that expired this year, property tax increases averaged 5.43 per cent.

Kerry Tarasoff, the city’s chief financial officer, said the city administration hit its target to stay below four per cent.

“There is only one taxpayer and we understand the ability to pay,” Tarasoff told reporters on Monday. “We’ve really pushed the administration hard to be as frugal as they can without affecting service levels.”

The proposed increase would add $8.1 million to the total city operating budget of $481.4 million. The budget also proposes spending $261.4 million on capital projects. The utilities budget is another $437.8 million, but it does not rely on property taxes for support.

The total budget tops $1 billion, up from $997 million in 2016.

While the budget includes inflationary increases for the Saskatoon Police Service, it does not include any new officers. Any request for more officers must wait until after the new board of police commissioners meets later this month. Eight new officers were added in the 2016 budget.

Even without new officers, the police budget tops $96 million.

The budget must still be approved by the new city council elected Oct. 26. Budget deliberations begin Nov. 30.

The budget includes nearly 47 new full-time employees, including eight new employees at the Remai Modern Art Gallery of Saskatchewan. The gallery, which has come under criticism for being late and over budget, is now scheduled to be completed in 2017.

The proposed budget for operating the Remai Modern in 2017 is $5.19 million, nearly 10 times the city’s contribution to SaskTel Centre’s operating costs. The city’s 2017 budget includes $594,200 for SaskTel Centre.

The number of new civic employees in the budget represents a substantial increase over the 12.4 new full-time employees added in the 2016 budget. Several city councillors expressed concern when nearly 64 new full-time employees were added in the 2015 budget.

Tarasoff said the city was able to add employees without a substantial tax increase by using funds that were already available. For example, a weekend shift was added for vehicle and equipment fleet maintenance to replace higher overtime costs the city paid last year.

The city also reflects a reduction in revenue sharing from the provincial government of about $2.4 million. On Monday, city manager Murray Totland told a special city council committee meeting that he’s “quite certain” the decrease will not be greater.

Revenue sharing is based on dividing 20 per cent of the provincial sales tax (PST) among municipalities, and “2017 just happens to be a year when PST revenues are down,” Totland said.

The decision not to release the preliminary budget until after the civic election became an early election issue. Mayoral candidate Kelley Moore criticized her opponents for voting in April to withhold the budget until after the election.

Council, including Clark and defeated incumbent Don Atchison, voted to release a budget update in September. That update projected a 3.89 per cent property tax increase.

Moore, who finished third behind Clark and Atchison, also gained traction during the campaign by suggesting the city’s debt was becoming unmanageable.

The city’s debt is estimated to be $338 million at the beginning of 2017. Material provided to the media suggests Saskatoon’s debt per person is lower than that of Regina, Edmonton, Calgary and Winnipeg.

“We’re certainly watching that and careful about what we take on,” Tarasoff said.

Debt is expected to peak at $542 million in 2020. Debt servicing, which also became a focus during the campaign, increased to $34.5 million. That includes $27.3 million to pay back principal and $7.2 million in interest payments.

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